Rocket Lab (NASDAQ:RKLB) Earns "Overweight" Rating from Cantor Fitzgerald

Key Points

• Cantor Fitzgerald reaffirmed its Overweight rating on Rocket Lab and kept a $96 price target, which is essentially in line with the stock’s recent trading price.
• Other analysts have also turned more bullish, with firms like Craig Hallum and TD Cowen raising price targets to $120, while consensus coverage remains Moderate Buy with an average target of $108.24.
• Rocket Lab recently reported strong revenue growth in its latest quarter, and its stock has been volatile amid insider selling and recent news of a planned acquisition of Iridium that could expand its recurring revenue base.

Rocket Lab (NASDAQ:RKLB - Get Free Report)'s stock had its "overweight" rating reaffirmed by stock analysts at Cantor Fitzgerald in a report issued on Tuesday,Benzinga reports. They currently have a $96.00 price target on the rocket manufacturer's stock. Cantor Fitzgerald's price objective points to a potential downside of 0.06% from the stock's previous close.

Several other brokerages also recently weighed in on RKLB. Craig Hallum increased their price target on Rocket Lab from $98.00 to $120.00 and gave the stock a "buy" rating in a research report on Monday. Citigroup reissued an "outperform" rating on shares of Rocket Lab in a report on Tuesday. TD Cowen raised their target price on Rocket Lab from $90.00 to $120.00 and gave the stock a "buy" rating in a report on Friday, May 8th. Clear Str upgraded Rocket Lab to a "strong-buy" rating in a research report on Wednesday, March 18th. Finally, KeyCorp raised Rocket Lab from a "sector weight" rating to an "overweight" rating and set a $135.00 price target for the company in a report on Monday, June 15th. Three research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Rocket Lab currently has an average rating of "Moderate Buy" and a consensus price target of $108.24.

Rocket Lab Stock Performance

Shares of RKLB stock traded down $1.95 during trading hours on Tuesday, hitting $96.06. The company's stock had a trading volume of 10,079,097 shares, compared to its average volume of 24,934,561. The stock has a market cap of $55.59 billion, a PE ratio of -304.67 and a beta of 2.48. Rocket Lab has a 12-month low of $33.73 and a 12-month high of $151.00. The company has a 50 day moving average of $107.78 and a 200 day moving average of $85.40. The company has a current ratio of 4.47, a quick ratio of 4.02 and a debt-to-equity ratio of 0.02.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last issued its earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.07). The firm had revenue of $200.35 million during the quarter, compared to analysts' expectations of $189.65 million. Rocket Lab had a negative net margin of 26.87% and a negative return on equity of 11.72%. The firm's revenue was up 63.4% compared to the same quarter last year. During the same quarter last year, the company posted ($0.12) earnings per share. On average, sell-side analysts forecast that Rocket Lab will post -0.29 EPS for the current fiscal year.

Insider Activity

In other Rocket Lab news, Director Alexander R. Slusky sold 40,000 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $123.60, for a total transaction of $4,944,000.00. Following the transaction, the director owned 334,675 shares in the company, valued at approximately $41,365,830. This represents a 10.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Arjun Kampani sold 88,000 shares of the business's stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $107.98, for a total value of $9,502,240.00. Following the completion of the sale, the senior vice president owned 264,705 shares of the company's stock, valued at $28,582,845.90. This trade represents a 24.95% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 573,515 shares of company stock worth $76,412,122. 8.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Rocket Lab

A number of large investors have recently added to or reduced their stakes in RKLB. Aventura Private Wealth LLC acquired a new stake in shares of Rocket Lab in the fourth quarter valued at about $25,000. Mcguire Capital Advisors Inc. acquired a new position in shares of Rocket Lab during the 4th quarter worth about $27,000. Zions Bancorporation National Association UT acquired a new position in shares of Rocket Lab during the 4th quarter worth about $28,000. EverSource Wealth Advisors LLC lifted its stake in Rocket Lab by 109.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 796 shares of the rocket manufacturer's stock valued at $28,000 after buying an additional 416 shares in the last quarter. Finally, Gordian Capital Singapore Pte Ltd purchased a new position in Rocket Lab in the 4th quarter valued at about $29,000. 71.78% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Rocket Lab

Here are the key news stories impacting Rocket Lab this week:

• Positive Sentiment: Rocket Lab announced a definitive agreement to acquire Iridium, adding a global satellite communications network, spectrum rights, and a large customer base to its existing launch and spacecraft businesses. Rocket Lab to buy satellite communications firm Iridium in $8 billion deal
• Positive Sentiment: Analysts and market commentators say the deal improves Rocket Lab’s financial profile by adding higher-margin recurring revenue, making the company look more like a “space powerhouse” and a closer competitor to SpaceX. Rocket Lab’s (RKLB) Iridium Acquisition Adds the Cash Flow It Was Missing
• Positive Sentiment: Several analysts raised price targets or turned more bullish after the announcement, citing Rocket Lab’s “formidable” competitive position and its evolution into a vertically integrated space platform. Top Analyst Raises Rocket Lab Stock Price Target, Cites ‘Formidable’ Competitive Position
• Neutral Sentiment: More bullish coverage also highlighted Rocket Lab’s long-term strategy to challenge SpaceX by combining launch services with satellite communications and recurring network revenue. The Rocket Lab CEO’s Bold Bet to Challenge SpaceX’s Dominance
• Negative Sentiment: The deal is large and complex, so investors may also weigh integration risk, dilution from the stock component, and execution risk as Rocket Lab takes on a much bigger business model. Rocket Lab to buy satellite communications firm Iridium in $8 billion deal

About Rocket Lab

Rocket Lab is an aerospace company that provides launch services, spacecraft, and space systems for commercial and government customers. The company's primary launch vehicle is Electron, a small-lift orbital rocket designed to deploy small satellites and rideshare payloads to low Earth orbit. Rocket Lab also develops and manufactures the Rutherford engine, noted for its electric-pump-fed design and additive-manufactured components, which powers Electron and supports the company's propulsion capabilities.

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